Maryland Insurance Administration Issues Bulletin on Inducements, Rebates

October 29, 2019

The Maryland Insurance Administration (MIA) issued a bulletin on Oct. 23 to remind regulated companies about prohibited practices such as inducements and premium rebates.

The bulletin says that under state regulation, a person may not knowingly pay, allow, give or offer to pay, allow, or give directly or indirectly as an inducement to an insurance contract or annuity:

  • a rebate of premiums payable on the contract
  • a special favor or advantage in the benefits under the contract policy
  • paid employment or a contract for services of any kind
  • any valuable consideration or other inducement not specified in the contract

Additionally, a person may not knowingly pay, allow, give or offer to pay, allow, or give directly or indirectly as an inducement to an insurance policy:

  • a rebate, discount, abatement, credit, or reduction of the premiums stated in the policy
  • a special favor or advantage in the benefits under the policy
  • any valuable consideration or other inducement not specified in the policy

The regulation allows for educational or promotional items not to exceed $50. Items such as gift cards, prizes, raffle tickets and any other items of value may not be paid, allowed, given, or offered as incentive to get consumers to enroll in a plan.

The MIA bulletin encouraged title insurance producers to review Bulletin No. 17-16 for additional prohibitions that apply to the title industry.


Contact ALTA at 202-296-3671 or communications@alta.org.

181864